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New York : How the IRS will pay you more on your refunds, even for the tax filing you haven’t done yet

New York :

How the IRS will pay you more on your refunds, even for the tax filing you haven't done yet

Taxpayers who received their refund in June of last year received annual interest of 5 percent.

Photo: ADEK BERRY / . / .

He Internal rents service (IRS) could pay you Extra money for having a delay in the refund of your taxes.

In the midst of the health crisis a delay in the tax refund process from the federal agency, it would be granting you a payment for the interest of the late refunds. The IRS reported in a statement that it still has about 6.9 million people returns in 2020 that are in “process”. If this is your case, they will receive interest for the delay in your return.

Taxpayers with a refund issue date between April 15 and June 30 of last year earned annual interest of 5%, while refunds issued between July 1 and September 30, 2020 earned annual interest of 3%, the agency reported.

Same as him IRS charges interest when taxpayers don’t pay on time, the federal agency also gives interest to taxpayers when the government issues refunds and does so slowly. The decision is due to a peculiarity of the tax code as reported by the newspaper The Wall Street Journal.

As a result of the pandemic last year, the economy of the nation was dragged into the worst crisis since the Great Depression. The Treasury Department extended the tax filing deadline from April 15 to July 15. After that date the IRS continued to process electronic returns and issued refunds through direct deposit.

Related: Brace yourself: IRS delays in paying the stimulus check and tax refund will continue into 2021, a report says.

What happened in 2020?

Since mid-March 2020 the IRS ordered most of his employees to work remotely so many agency functions were paralyzed creating a delay in returns that were made on paper.

The overflow of statements was so great that the IRS rented trailers and storage space to hold returns until workers could return to the offices and begin sorting them, according to the director of the Center for Taxpayer Rights, Nina Olson, in an NPR interview.

The problem was compounded when the IRS had to deliver stimulus checks to tens of millions of Americans. Those who have not received their check payments will have to claim their money through a Refund Recovery Credit on their 2020 tax return.

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